Commercial Greenhouse Market by Type (Glass Greenhouse, Plastic Greenhouse), Crop Type (Fruits, Vegetables, Flowers & Ornamentals, Nursery Crops), Equipment (Hardware, Software & Services) and Region - Global Forecast to 2028
[322 Pages Report] According to MarketsandMarkets, the commercial greenhouse market is projected to reach USD 68.7 billion by 2028 from an estimated USD 39.6 billion in 2023, at a CAGR of 11.6% during the forecast period in terms of value. Several important factors augment the demand for commercial greenhouse solutions and services on a global scale. Commercial greenhouses provide the opportunity to lengthen growing seasons, lessen the effects of unfavorable weather, and ensure reliable crop harvests. Additionally, as consumer's awareness of the provenance and quality of their food grows, the transparency and traceability provided by greenhouse-grown products find a significant market resonance.
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Market Dynamics
Driver: Need for higher yields using limited space and water.
As the population expansion continues, available arable land becomes insufficient, making efficient land utilization a critical concern. Commercial greenhouses address this challenge by maximizing space utilization through vertical farming, hydroponic, and aeroponic systems, allowing for multiple layers of cultivation within a compact area. This spatial efficiency enables growers to achieve substantially higher crop yields compared to traditional open-field methods. Moreover, water scarcity is a compelling issue across many regions, necessitating the adoption of water-efficient cultivation techniques. Commercial greenhouses excel in this aspect by enabling precise control over irrigation, preventing water wastage through targeted delivery directly to plant roots. Additionally, advanced irrigation systems like drip and recirculation systems within greenhouses optimize water use and reduce evaporation losses. Thus, these factors are anticipated to drive the market of commercial greenhouses in the upcoming years.
Restraint: Deployment of expensive systems in commercial greenhouses
Commercial greenhouses are highly expensive owing to the use of several high-cost systems, such as HVAC systems, control systems, LED grow lights and sensors. Each LED grow light unit contains an array of LEDs specially designed for greenhouse applications, which increases their overall costs. These units contain different types of LED lights with variations in terms of wattage and wavelengths to provide the required light spectrum for the optimal growth of specific plant species.
It can be too expensive to make the initial investment needed to build up advanced infrastructure and equipment within greenhouses. Potential investors may be discouraged from entering the market by high expenses, especially smaller-scale farmers or those in emerging regions. This can restrict market growth and accessibility. Additionally, ongoing operational expenses associated with maintaining and running these advanced systems can be substantial. Energy-intensive climate control, lighting, and automation systems contribute to elevated utility bills. Thus, these factors could act as a restraint for market growth.
Opportunity: Rise in demand for floriculture and ornamental horticulture applications.
The increasing demand for floriculture and ornamental horticulture presents a significant opportunity for the commercial greenhouse market. As urbanization and disposable incomes rise across the globe, there is a growing interest in enhancing living and working spaces with aesthetically pleasing plants and flowers. Commercial greenhouses provide an ideal environment for cultivating a wide variety of flowers, plants, and ornamental foliage with precision and control.
Commercial greenhouses' capacity to provide ideal growing conditions independent of the climate outside is expected to benefit market growth. This makes it possible to grow flowers and decorative plants all year long, satisfying demand for these items during off-seasons or in areas with unfavorable weather. Additionally, greenhouses shield sensitive plants from harsh weather, pests, and illnesses, producing goods of superior quality and greater aesthetic appeal.
Challenge: Risk of equipment failure and delays in the learning curve of growers
The high risk of equipment failure and the resultant possibility of limited production is hindering the adoption of greenhouse farming. For instance, failure of a part of the system, such as a water pump, may lead to the death of the plants within a matter of hours. Without soil, there is no water or nutrient storage for plants to feed on. Much like any typical grow room, in case of a power outage, the backup must be ready. This might result in additional costs, consequently affecting the cost of production and profit margins.
The delay in the learning curve of users also acts as a challenging factor in the growth of this market. For a large portion of the population that is accustomed to traditional ways and farming techniques, it becomes difficult to adopt modern and newer techniques, such as hydroponics. They are required to spend considerable time to understand the systems. Delays in getting familiar with the systems can hamper production. Delayed learning curves among growers thus pose a potential challenge to market growth.
Commercial Greenhouse Market Ecosystem
Leading companies in this market include well-established, financially stable solution providers of commercial greenhouse products and service providers. These companies have been operating in the market for several years and possess a diversified service portfolio, state-of-the-art laboratory & technologies, and strong global sales and marketing networks. Prominent companies in this market include Berry Global Group, Inc (US), Signify Holding (Netherlands), Heliospectra AB (Sweden), PLASTIKA KRITIS S.A. (Greece), EVERLIGHT ELECTRONICS CO., LTD (Taiwan), Prospiant (US), RICHEL GROUP (France), Argus Control Systems Limited (Canada), Certhon (Netherlands), LOGIQS.B.V. (Netherlands), Lumigrow, Inc (Canada), Agra Tech, Inc (US), Hort Americas (US), Top Greenhouses (Israel), and Stuppy Greenhouse (US).
Within the greenhouse type segment, plastic greenhouse is projected to have the highest market growth rate during the forecast period.
Alternatives to conventional glass structures that are more affordable include plastic greenhouses. Plastic greenhouses often have cheaper construction costs and material costs, making them more affordable for a wider range of producers, including small and medium-sized businesses. This accessibility promotes broader market adoption and expansion.
Furthermore, greenhouses made of plastic have great insulating capabilities. They can hold onto heat more effectively than glass buildings, which results in energy savings while controlling temperature. This thermal efficiency helps maintain favorable growing conditions and lowers the running costs for heating and cooling. Thus, such factors contribute to the growth of the market, and the plastic greenhouse category is the fastest-growing segment in the type segment. It is expected to propel the market growth further.
Within the equipment segment, hardware is predicted to have the largest market value during the forecast period.
The hardware segment is predicted to have the largest market value in the commercial greenhouse segment due to its fundamental role in establishing and maintaining greenhouse structures. Typically, the hardware components are made to survive environmental obstacles, including wind, snow, rain, and freezing temperatures. High-quality hardware components also protect the greenhouse structure's durability and dependability, decreasing the need for frequent repairs or replacements and helping greenhouse operators save money overall. Moreover, the expansion of commercial greenhouse farming into regions with varying climates and agricultural practices creates a demand for adaptable and reliable hardware solutions.
Within the crop-type segment, vegetables are anticipated to have the leading market share during the forecast period.
Greenhouse environments enable precise control over factors such as temperature, humidity, light, and nutrients. This level of control enhances crop growth, leading to higher yields and superior-quality produce. Consumers are increasingly seeking nutritious and visually appealing vegetables, which are more reliably achieved within greenhouse farming techniques. Since vegetables are utilized across the majority of dishes and are considered a staple food across the world, thus there is a never decreasing demand for vegetables, which is expected to drive the market of commercial greenhouses in the upcoming years.
Europe is expected to have the largest market share during the forecast period.
Due to urbanization and other land-use pressures, certain European countries have a limited amount of arable land accessible. Commercial greenhouses, therefore, offer an effective approach to maximize food production in a constrained location, making them a workable answer to the problem of food security. European institutions, universities, and research organizations are at the forefront of agricultural research and innovation. This has led to the development of advanced greenhouse technologies, cultivation practices, and crop varieties that enhance productivity and sustainability. Moreover, the developed commercial greenhouse sector in Europe enables surplus output that may be exported to other regions, which helps the area dominate the market.
Key Market Players
The key players in this market include Berry Global Group, Inc (US), Signify Holding (Netherlands), Heliospectra AB (Sweden), PLASTIKA KRITIS S.A. (Greece), EVERLIGHT ELECTRONICS CO., LTD (Taiwan), Prospiant (US), RICHEL GROUP (France), Argus Control Systems Limited (Canada), Certhon (Netherlands), LOGIQS.B.V. (Netherlands), Lumigrow, Inc (Canada), Agra Tech, Inc (US), Hort Americas (US), Top Greenhouses (Israel), Stuppy Greenhouse (US). These companies have been focusing on expanding their market presence, enhancing their solutions, and partnering with many channel partners and technology companies to cater to consumers across the globe. The deep roots of these players in the market and their robust offerings are among the major factors that have helped them achieve major sales and revenues in the global commercial greenhouse market.
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Report Metric |
Details |
Market size available for years |
2018–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD) |
Segments Covered |
Type, Equipment, Crop Type, And Region. |
Regions covered |
North America, Europe, Asia Pacific, South America, and Rest of the World (RoW) |
Companies covered |
Berry Global (US), Signify Holdings (Netherlands), Heliospectra AB (Sweden), Plastika Kritis S.A. (Greece) Richel Group (France), Argus Control Systems Limited (Canada), Certhon (Netherlands), Logiqs B.V. (Netherlands), Agra Tech, Inc (US), and Hort Americas LLC (US). |
This research report categorizes the commercial greenhouse market based on type, equipment, crop type, and region.
Based on type, the commercial greenhouse market has been segmented as follows:
- Glass Greenhouse
- Plastic Greenhouse
Based on the equipment, the commercial greenhouse market has been segmented as follows:
- Hardware
- Software & services
Based on the crop type, the commercial greenhouse market has been segmented as follows:
- Fruits
- Vegetables
- Flowers & Ornamentals
- Nursery Crops
- Other Crop Types
Based on the region, the commercial greenhouse market has been segmented as follows:
- North America
- Europe
- Asia Pacific
- South America
- RoW (the Middle East & Africa)
Recent Developments
- In August 2023, Certhon (Netherlands) acquired DENSO (Japan), which helped Certhon to accelerate the global expansion of its agricultural production business by leveraging Certhon's advanced horticultural technologies to develop innovative farm models, address food challenges, and enhance the agricultural value chain.
- In May 2022, Signify Holding (India) acquired the rights of Fluence (US). This acquisition allowed Signify Holding to expand its product offering in indoor farming lighting solutions that help Signify’s position n in the attractive North American horticulture lighting market.
- In May 2021, Heliospectra AB (Sweden) partnered with Harahara Inc. (Japan). The partnership enabled Heliospectra AB to sell it to bring light automation to the Japanese market, thereby expanding its geographical presence. The partnership is expected to augment Heliospectra AB's long-term growth strategy in new geographies across the Japanese market.
- In December 2020, Prospiant (US) acquired Sunfig Corporation (US), which helps Prospiant by providing software solutions to the market Sunfig Corporation is a provider of software solutions that optimize solar energy investments through upstream design, performance, and financial modeling.
Frequently Asked Questions (FAQ):
Which are the major companies in the commercial greenhouse market? What are their major strategies to strengthen their market presence?
The key players in this market include Berry Global Group, Inc (US), Signify Holding (Netherlands), Heliospectra AB (Sweden), PLASTIKA KRITIS S.A. (Greece), EVERLIGHT ELECTRONICS CO., LTD (Taiwan), Prospiant (US), RICHEL GROUP (France), Argus Control Systems Limited (Canada), Certhon (Netherlands), LOGIQS.B.V. (Netherlands), Lumigrow, Inc (Canada), Agra Tech, Inc (US), Hort Americas (US), Top Greenhouses (Israel), Stuppy Greenhouse (US). Companies are focusing on expanding their production facilities by entering collaborations and partnerships as well as by launching new products to expand their businesses and increase their consumer base across various geographical areas. New product launches due to extensive research & development (R&D) initiatives, geographical expansion to tap the potential of emerging economies, and strategic acquisitions to gain a foothold over the large extent of the supply chain are the key strategies adopted by companies in the commercial greenhouse market.
What are the drivers and opportunities for the commercial greenhouse market?
Government initiatives to promote smart agricultural practices, the need for higher yields using limited space & water, and increasing demand for food and climate change challenges are some of the major drivers of the commercial greenhouse market. The upcoming opportunities include a rising preference for vegetables and fruits in developing countries.
Which region is expected to hold the highest market share?
The market in Europe will dominate the market share in 2023, showcasing strong demand for commercial greenhouse farming in the region. Over the predicted period, it is anticipated that the regional market will continue to be the largest. This can be linked to the initiatives by the European governments to provide support and subsidies for sustainable agriculture practices, including greenhouse cultivation. These incentives encourage growers to invest in commercial greenhouse technology, further driving market growth.
What are the key technology trends prevailing in the commercial greenhouse market?
The agriculture industry is experiencing technological innovations as companies engaged in the commercial greenhouse market are offering faster and more accurate technologies such as solid-state lighting (SSL) technology. The use of SSL technology in horticulture helps save energy and enhance plant growth. SSL devices are unique light sources offering various emission spectrums and advantages. Higher SSL efficiency decreases radiated heat. Reduced heat allows for lighting to be placed closer to the plant, increasing crop density and lowering water consumption. White SSL provides a continuous spectrum from IR to UV, replicating the sun and allowing indoor growth in secure, controlled environments. Monochromatic SSL's narrow wavelengths and instant dimming or on/off features allow for excellent spectral control. Light can be matched to the plant's unique spectra requirement, and the light spectrum can be adjusted to enhance the growth stage.
What is the total CAGR expected to be recorded for the commercial greenhouse market during 2023-2028?
The CAGR is expected to record a CAGR of 11.6% from 2023-2028.
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Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, sources such as annual reports, press releases, investor presentations of companies, white papers, certified publications, articles from regulatory bodies, trade directories by recognized authors, and databases were used to identify and collect information for this study.
Secondary research was used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to the industry trends to the bottom-most level, geographic markets, and key developments from both market and technology-oriented perspectives.
Primary Research
The commercial greenhouse market comprises several stakeholders, including raw material suppliers, system manufacturers, grow media and nutrient formulators, suppliers, crop growers, end-product manufacturers, and regulatory organizations in the supply chain. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary interviewees from the supply side include research institutions involved in R&D to introduce technology, distributors, wholesalers, climate control system manufacturers, grow media and nutrient manufacturers, raw material suppliers, key opinion leaders, and technology providers. Primary sources from the demand side include key opinion research institutions, hydroponic growers, government agencies, horticulturists, floriculturists, and sustainable and indoor farming associations who provided inputs through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the commercial greenhouse market. These approaches were extensively used to determine the size of the subsegments in the market. The research methodology used to estimate the market size includes the following details:
- The key players in the industry and the overall markets were identified through extensive secondary research.
- The revenues of the major commercial greenhouse players were determined through primary and secondary research; these were used as the basis for market sizing and estimation.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All macroeconomic and microeconomic factors affecting the growth of the commercial greenhouse market were considered while estimating the market size.
- All parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
- All macroeconomic and microeconomic factors affecting the commercial greenhouse market were considered while estimating the market size.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
Global commercial greenhouse Size: Bottom-Up Approach
In the bottom-up approach, the overall size of the commercial greenhouse market was calculated by identifying various entities influencing the value chain of the commercial greenhouse market. The revenue was arrived at by analyzing the major companies, system integrators, and service providers operating in the market. The estimation of the size of the smart greenhouse market for each region and country was based on the demand for commercial greenhouses. Developments and other critical parameters, such as ongoing and upcoming commercial greenhouse projects, were also tracked and identified for forecasting the market size.
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Global commercial greenhouse market Size: Top-Down Approach
In the top-down approach, the overall market size has been used to estimate the size of individual markets (mentioned in the market segmentation) through the percentage splits from secondary and primary research.
For the calculation of specific market segments, the most appropriate parent market size has been used to implement the top-down approach. The bottom-up approach has also been implemented for the data extracted from the secondary research to validate the market size for each segment. With the data triangulation procedure and the validation of data through primaries, the overall parent market size and each individual market size have been determined and confirmed in this study.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. Where applicable, the data triangulation and market breakdown procedures were employed to estimate the overall market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. The market size was also validated using both the top-down and bottom-up approaches.
Market Definition
A greenhouse is a structure with a transparent roof and walls, often made of glass or plastic. Various types of plants are grown in greenhouses, where their growth conditions can be monitored and controlled. Greenhouses vary in size from small greenhouses to commercial buildings.
According to the International Journal of Environmental Research and Public Health, a commercial greenhouse is used for the mass production of plants or produce (such as vegetables) that will be sold to retailers, who will sell them to the public. They are often high-tech structures controlled by a computer and may house complex equipment to control heating, cooling, lighting, relative humidity, and vapor-pressure deficit.
Key Stakeholders
- Manufacturers of commercial greenhouse and indoor farming equipment
- Original design manufacturing (ODM) and original equipment manufacturing (OEM) technology solution providers
- Sensor providers
- Software solution providers
- Individual and large growers
- Horticulturists and floriculturists
- Research institutes and organizations
- Government bodies, regulatory authorities, venture capitalists, and private equity firms
Report Objectives
Market Intelligence
- Determining and projecting the size of the commercial greenhouse market based on mode of application and region over a five-year period ranging from 2023 to 2028.
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across the key regions
- Analyzing the demand-side factors based on the following:
- Impact of macro- and microeconomic factors on the market
- Shifts in demand patterns across different subsegments and regions.
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape for market leaders.
- To strategically profile the key players and comprehensively analyze their core competencies.
- To analyze competitive developments such as joint ventures, mergers & acquisitions, new product developments, and research & development (R&D) in the commercial greenhouse market
Competitive Intelligence
- Identifying and profiling the key market players in the commercial greenhouse market
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Providing a comparative analysis of the market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key region.
- Analyzing the value chain and regulatory frameworks across regions and their impact on prominent market players
- Providing insights into the key investments and product innovations, and technology in the commercial greenhouse market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the company’s specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakdown of the Rest of Europe's commercial greenhouse market into Poland, Greece, and Denmark.
- Further breakdown of the Rest of Asia Pacific commercial greenhouse market into New Zealand, Indonesia, Vietnam, South Korea, and Singapore.
Company Information
- Detailed analyses and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Commercial Greenhouse Market
I want commercial greenhouse market statistics for Europe region.